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Required information The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 14-8 in
Required information The Chapter 14 Form worksheet is to be used to create your own worksheet version of Example E and Exhibit 14-8 in the text. 2. The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following: Use Exhibit 14B-1 and Exhibit 148-2. (Use appropriate factor(s) from the tables provided.) int B C 1 Chapter 14: Applying Excel 2 rences 3 Data 4 Example E 5 Cost of equipment needed $ 210,000 6 Working capital needed $ 20,000 7 Overhaul of equipment in four years $ 20,000 8 Salvage value of the equipment in five years $ 35,000 9 Annual revenues and costs: 10 Sales revenues $ 375,000 11 Cost of goods sold $ 240,000 12 Out-of-pocket operating costs $ 75,000 13 Discount rate 17 % a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Round your present value factor to 3 decimals and round all other intermediate calculations to nearest whole dollar.) Net present value c. The internal rate of return is between what two whole discount rates (e.g., between 10% and 11%, between 11% and 12%, between 12% and 13%, between 13% and 14%, etc.)? The internal rate of return is between % and
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